HomeMy WebLinkAbout2001-02-05 City CouncilTO:
FROM:
City of Palo Alto
City Manager’s Report
HONORABLE CITY .COUNCIL
CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE:
SUBJECT:
FEBRUARY 5, 2001 CMR:123:01
ADOPTION OF A BUDGET AMENDMENT ORDINANCE IN THE
AMOUNT OF $475,000 TO REIMBURSE SUMMERHILL HOMES
FOR THE DEMOLITION OF A BUILDING AND RELOCATION
OF A HISTORIC HOUSE LOCATED ON THE FORMER PALO
ALTO MEDICAL FOUNDATION PROPERTIES
RECOMMENDATION
Staff recommends that the City Council approve a Budget Amendment Ordinance (BAO) .
in the amount of $475,000 to reimburse expenditures for the demolition of a medical
building and the relocation of an historic residential structure.
BACKGROUND
On April 10, 2000, the City Council approved a development agreement between the City
of Palo Alto and the Palo Alto Medical Foundation (PAMF) and adoption of a BAO for
acquisition of certain real property owned by PAMF (CMR:218.00). The properties
acquired by the City included the future park site, the Roth Building and the affordable
housing site. The agreement provided for the City to acquire, through purchase and
dedication, an approximately 1.24-acre site to develop a future affordable housing
project. The housing site is located on Channing Avenue, between Ramona and Bryant
Streets. As a part of the development agreement, the City agreed to reimburse the
developer for specific site delivery costs consisting of the demolition of a PAMF medical
building and relocation of one historic residential structure to a new receiver site for
future single family use. CMR:218:00 identified the costs associated with
implementation of the development agreement and stated that the funds to cover these
costs ($475,000) would be appropriated at a later date from the Commercial Housing In-
Lieu Fund.
Included in the development agreement was the ability for PAMF to assign their
entitlements and obligations to SummerHill Homes as the developer. PAMF executed
¯ CMR:123:01 Page 1 of 3
this assignment with SummerHill Homes. SummerHill Homes has completed the two
site delivery construction activities and has requested the reimbursement from the City
for a total of $475,000.
DISCUSSION
The affordable housing site contained four main structures and two accessory structures.
The development agreement provided for SummerHill to remove two of the structures,
with reimbursement of specific costs by the City.
The first structure was the PAMF Research Building, which consisted of 27,340 square
feet with a full basement. Section 8(c)(i)(e) of the development agreement provided that
the developer would demolish the Research Building and the City would payal! costs and
expenses of carrying out the demolition, in an amount not to exceed $250,000.
SummerHill Homes has completed demolition of the structure, including~rcmoval of the
building material, protection for the heritage Oak tree and backfill" of the basement, and
has submitted an invoice for payment.
The second structure is the boarding house formerly located at 846 Bryant Street. This is
an historic residential structure that was located on the future affordable housing site.
SummerHill agreed to relocate the structure in concert with two other historic boarding
houses on Bryant Street. The three houses were re-located to the 900 block of Bryant
Street where they are being rehabilitated for use as single family homes. Section
8(c)(iv)(b) of the development agreement provided that with the completed relocation of
the house from the affordable housing site, the City shall pay the developer $225,000.
SummerHill Homes has completed the relocation of 846 Bryant Street and has submitted
an invoice for payment.
RESOURCE IMPACT
The BAO in the amount of $475,000 will reduce the unrestricted balance in the
Colnmercial Housing In-Lieu Fund from approximately $933,000 to $458,000. This
appropriation of funds from the Commercial Housing In-Lieu Fund is a one-time expense
and no future year General Fund ongoing costs are anticipated.
ENVIRONMENTAL REVIEW
This agreement does not constitute a project under the Califomia Environmental Quality
Act and, therefore, no environmental assessment is required.
POLICY IMPLICATIONS
This report is consistent with current City policies.
ATTACHMENTS
Attachment A:Budget Amendment Ordinance -
CMR: 123:01 Page 2 of 3
PREPARED BY:
J~Lusardi, Current Planting Manager
DEPARTMENT HE .AD:
G. EDWARD GAWF
Director of Planning and Community Environment
CITY MANAGER APPROVAL:
AUDREY SEY1V~gUR o
Assistant to the City Manager
CMR: 123:01 Page 3 of 3
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 2000-01 TO
PROVIDE AN ADDITIONAL APPROPRIATION OF $475,000 IN THE
COMMERCIAL HOUSING IN-LIEU FUND FOR DEMOLITION AND
RELOCATION COSTS AT THE FORMER PALO ALTO MEDICAL
FOUNDATION PROPERTIES
WHEREAS, pursuant to the provisions of Section 12.of Article
III of the Charter of the City of Palo Alto, the Council on June 19,
2000 did adopt a budget for fiscal year 2000-01; and
WHEREAS, on April i0, 2000 the City Council approved a
Development Agreement between the City and the Palo Alto Medical
Foundation (PAMF); and
WHEREAS, as part of the development agreement, the City agreed
to reimburse the developer for costs associated with the demolition
of a PAMF medical building and relocation of a historic residential
structure; and
WHEREAS, the developer, SummerHill Homes, has completed the
demolition and relocation activities and has requested reimbursement
from the City for a total of $475,000; and
WHEREAS, the City Manager’s Report (CMR:218:00) da~ed April
i0, 2000 specified that the $475,000 was to come out of the
Commercial Housing In-Lieu Fund; and
WHEREAS, sufficient funds are available in the Commercial
Housing In-Lieu Fund; and
WHEREAS., the additional appropriation of funds from the
Commercial Housing In-Lieu Fund is a one-time expense and no future
year General Fund ongoing costs are anticipated; and
WHEREAS, City Council authorization is needed to amend the
2000-01 budget as hereinafter.set forth.
NOW, THEREFORE, the Council of the City of Palo Alto does
ORDAIN as follows:
SECTION I. The sum of Four Hundred Seventy Five Thousand
Dollars ($475,000) is hereby appropriated to non-salary expenses in
the Commercial Housing In-Lieu Fund.
SECTION 2. This transaction will reduce the Commercial Housing
In-Lieu Fund reserve from $933,013 to $458,013.
SECTION 3. As specified, in Section 2.28.080 (a) of the Palo
.Alto Municipal Code, a two-thirds vote of the City Council is
required to adopt this ordinance.
SECTION 4. The Council of the City of Palo Alto hereby
finds that this project is exempt from the provisions of the
California Environmental Quality Act, and therefore, no
environmental impact assessment is necessary.
SECTION 5. As provided in Section 2.04.350 of the Palo Alto
Municipal Code, this ordinance shall become effective upon adoption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS :
ABSENT:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:City Manager
Senior Asst. City Attorney Director of
Services
Administrative